Chrysler Will Consider Canadian Investment Money For Its Minivan Plant

Fiat Chief Executive Marchionne looks on during a
meeting with Italian Prime Minister Renzi (not pictured) to mark
the presentation of new "Jeep Renegade" car at Chigi palace, in
RomeThomson
Reuters

DETROIT (Reuters) - Chrysler Group Chief Executive Sergio
Marchionne said on Wednesday the company has not resumed talks
with Canadian officials about financial support to help upgrade a
minivan plant in Windsor, but would entertain any proposal
offered.

Chrysler had reportedly sought $700 million in government support
toward a $3.6 billion investment for the plant, but the deal was
scuttled when federal and provincial officials pressed Chrysler
on how much of its investment would be spent in Ontario, it was
reported in March.

Marchionne, who is also the CEO of Fiat <fia.mi>, which
owns Chrysler, said on Wednesday that his company is already
investing in the Windsor plant without government funds.

Chrysler has said it will develop and produce its next-generation
minivan in Windsor, Ontario, but has not detailed the scope or
duration of that production work, nor how much it will spend to
re-tool the plant. It is unknown if the company scaled back its
investment after the government talks failed.

A vocal opponent to any government incentives, Ontario
conservative leader Tim Hudak, was defeated in provincial
elections two months ago. The province's Liberal economic
development minister said on Wednesday that the government was
"always prepared" to talk with Chrysler.

Marchionne said on Wednesday the automaker could not hold up its
plans.

"If in fact the federal government or the province of Ontario
think that there is a proposal that would be of interest to
Chrysler, I think we're more than willing to sit down and discuss
it," Marchionne said on an earnings conference call.

"But, today, I think the horse left the barn, and the (Chrysler)
investment is going into Windsor and that's all there is to say."

Jerry Dias, president of the Unifor union, which represents
workers at the Windsor plant, said there is "no question" that
federal and provincial governments are interested in coming to an
agreement with Chrysler.

"I would expect that the provincial government is going to reach
out, but it's crystal clear that the provincial government and
the federal government have left the door wide open for
Chrysler," Dias said.

(Reporting by Susan Taylor in Toronto and Bernie Woodall in
Detroit; editing by Gunna Dickson)

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